Wednesday 13 May 2020

Be A Cash-Sprinkler, Or Western Civilization Will Crumble

That is the message that a few economists and business pundits are spouting. At least that is my paraphrase of their message.

I read a news article yesterday that touted that the newest danger to the economy was that people were starting to save more and pay off their debts.

I’m not kidding, here is the article.

I read that and I was astonished as to the brazenness and brashness of so bold a claim that people looking after their own financial self-interests was a bad thing.

In truth and strictly speaking they (the economists and business pundits) are not wrong, the economy will suffer if people pause their spending in favour of paying off debt and building up their savings.

I say the sluggish return of the economy is worth it if it means that people finally get rid of debt and build up savings. 

For it is the combination of the two that gives a person more control over their lives and their future.

With little to no debt and increased savings, you can weather financial storms better and you can choose to do with your life what you truly want to do, not just do what you have to do.

I still say that we need to return to a system of Capitalism and leave Creditism behind. 

Capitalism is a system based on Capital (as in cash). You earn capital, you spend capital and you save capital. If you don’t have capital you don’t spend it.

Sure you have credit and you have some debt but it is manageable and not out of control. 

You have a mortgage but there is an end date. You have credit cards but you keep them either paid off or pay them off in the matter of months, not years or  . . . never. 

Creditism is a system based on credit, you have credit, you use that credit to spend on things you don’t really need and in so doing incur debt. 

You tell yourself that you will pay this debt off, but you never do. It is an endless cycle unless you do something drastic to free yourself from the chains of debt. 

Doubt me? Think I’m exaggerating that debt is enslavement? 

Imagine if someone offered you a year-long cruise or a fabulous job at a far off resort, but you would not be paid a dime, but all of your expenses were taken care of. 

Could you go? 

You are tied to your job by debt, ensnare by the use (or misuse rather) of credit.

We teach our youth that being in debt eternally is normal, by giving them a mortgage without a house, after they get out of school, simply to learn the skills to get a job. 

We do this WHY? 

So, if the economy takes a year or two longer to recover but people pay down (hopefully off) their debts that will be worth it.

Heck if people stop spending, maybe, just maybe prices and the cost of living will drop. After all that is what the law of supply and demand teaches us, right?

I still say that the cost of living should drop by a quarter to a third overnight. It won’t, but it should.

I have rambled on long enough about things that all of us know is not right and not fair, but persist anyways. 

Please, for yourself and your own future, eliminate your debts and build up your savings, you are worth it.

As always: Keep your head up, your attitude positive, and keep moving forward!

No comments:

Post a Comment